Agriculture Secretary Francisco P. Tiu Laurel Jr. said in a press statement that the decision reflects a more favorable outlook for sugar production and demand, warranting a longer import moratorium than earlier proposals.
“Based on the current outlook for sugar production and demand, a longer import moratorium than initially suggested (end of current crop year in September) is necessary,” Tiu Laurel said.
He cited stronger domestic raw sugar output, stressing that the policy is intended to prioritize locally produced sugar while stabilizing prices across the market.
Closer monitoring of refinery output
As chair of the Sugar Board, the policymaking body of the Sugar Regulatory Administration (SRA), Tiu Laurel said the agency will intensify monitoring of refinery operations to maintain accurate data on standard and premium-grade refined sugar inventories.
He added that close tracking of supply is essential to preventing market distortions, hoarding, and speculative pricing.
Molasses import rules in the pipeline
Beyond the sugar import ban, the DA and SRA are finalizing a long-delayed regulatory framework governing molasses imports, which is expected to provide further protection to domestic producers.
Under the proposed rules, molasses users will be required to first purchase and withdraw locally produced molasses. Only after these obligations are met—and based on a predetermined ratio—will imports be allowed, subject to SRA approval.
Modeled after earlier sugar policy
The planned system mirrors the earlier Sugar Order No. 2 (SO2), which linked import and export privileges to actual purchases of local sugar.
According to Tiu Laurel, the approach reduced discretion in allocations, curbed corruption risks, increased demand for domestic sugar, and helped lift farmgate prices.
More assertive sugar policy
With the extended import ban and tighter molasses regulations, the DA is signaling a more data-driven and assertive approach to sugar policy—one aimed at curbing market abuse while putting local producers first. —Ed: Corrie S. Narisma
